Weekly Outlook: Time for Tokenization – Berkay Aybey

While the markets are in a rather unpleasant state, the dynamics of crypto itself continue to progress on a separate track as usual.

Integration

The integration of traditional assets into cryptocurrency applications and their use in an on-chain structure continues unabated through tokenization. Blackrock’s BUIDL product in particular is one of the most demanded tokenization products of recent times. We see this integration developing at different levels.

Lloyd’s of London, which has a history of over 300 years, insures cryptocurrency service providers through its own companies. Exchanges, depositories and miners can insure themselves, which can normally be quite difficult due to both the instability of cryptocurrencies and legal gaps. What makes this insurance integration more interesting is that the process works on-chain, just as we wanted. You can request the insurance service via blockchain and make the payment with UDSC or the network’s own token. Therefore, all transactions are recorded on the blockchain.

Another important news regarding blockchain integration was the announcement that the California Department of Motor Vehicles (DMV) in the US was working with Avalanche to transfer vehicle records to blockchain. DMV news on this subject comes up from time to time. They were previously working with Tezos. So while we shouldn’t attach much importance to this news until it is finalized, it is pleasing that they are turning to blockchain.

Finally, to give an example of financial integration, Hong Kong-based Futu Securities International has received the necessary permits to provide cryptocurrency trading services. The company’s Singapore branch, MooMoo, had previously started operating in Singapore by obtaining licenses for the same service.

MiCA Rush?

While the EU cryptocurrency regulation MiCA will come into full force at the end of this year, cryptocurrency regulations have become more frequently discussed in the UK, which is leaving the EU.

While there have been discussions on the corporate structure of the DAO recently, last week it was discussed that the individual entity structure existing in the legal system should be updated.

The Law Commission, an independent organization that makes legal recommendations to the government, stated that in the current structure, individual assets are divided into tangible and intangible assets (such as debts and rights), but that cryptocurrencies can also contain features that fall within the scope of both classes, and that it is necessary to open a third class specifically for cryptocurrencies.

Speaking of MiCA, France, perhaps the first country that comes to mind when it comes to cryptocurrency in the EU, has updated its existing license requirements in terms of compliance with MiCA.

After the update, Bybit announced that it was withdrawing from France. We often see that companies, especially those working internationally, have difficulty adapting to new cryptocurrency regulations. We have previously witnessed some of the private sector being forced to withdraw after regulations were made in England and Hong Kong.

Mythical Games Effect

Polkadot has managed to shake off the dead weight and make a name for itself in the market again.

There was a significant increase in the number of transactions when Mythical Games established its own Parachain and moved to Polkadot. When it comes to games, blockchains that provide specific services in this regard generally come to mind, but Polkadot cannot be said to be very popular.

The reason for the decision was that the network was stable and would not be interrupted, while a reference was made to Solana and it was stated that the roadmap was satisfactory.

Orbit Chain

Arbitrum has taken the first step towards a cross-chain infrastructure. The vote to launch the Arbitrum infrastructure on other chains besides Ethereum has received high approval in a short time. According to the plan, developers will be able to transfer Arbitrum codes to other chains. The aim is to increase the treasury with the additional transaction fees to be obtained from these chains.

.fun Trend

The Pump.fun infrastructure, which allows you to mine meme coins without requiring any technical knowledge, has become so popular that those who see the income level have created similar platforms, causing the formation of a new market.

A similar infrastructure has now come with Twitter integration. The platform called makenow.meme allows you to create meme coins by simply tweeting. You start the tweet with $, write the name of the coin, enter its description and tag the makenow.meme account. The whole process is that short and simple. There is a wide audience that likes the meme coin trend as well as those that don’t. However, it seems that the meme coin trend is far from over.

The rapid developments in the meme coin sector and the transformation of even disadvantages into opportunities are happening very quickly. When it became easier to mine meme coins, the number of these coins, 99% of which were already issued for fraudulent purposes, increased even more. Naturally, rug-pull attempts increased as much. The initiative called Dumpy.fun made a move that made a splash in the market by saying, since most meme coins are rug-pull, let’s create a platform that allows short transactions to be opened for meme coins. The platform, which is currently only available to early access users, is expected to be available to everyone soon. You open a position with the debt you receive from the Save platform on Solana and pay your debt when the position is closed. It is the same as a classic futures transaction logic, but it is extra risky because it is a meme coin.

Briefly

Morgan Stanley announced that it will authorize its financial advisors to recommend Bitcoin ETFs to investors. The structuring process of Genesis has been completed and payments have started. A $4 billion asset will be distributed. Those who own Bitcoin on Genesis will receive a refund of 51%, ETH owners 65%, SOL owners 29% and stablecoin owners 100%. According to Bloomberg, Do Kwon’s extradition to South Korea has been confirmed. Trump has released a new NFT collection. The theme of the new collection is Bitcoin shoes, while NFTs were sold for 299-499 USD.